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Will weakness in Magnificent 7 stocks spread to Bitcoin price?

Published 10/31/2023, 03:31 PM
Updated 10/31/2023, 05:20 PM
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The mega-cap tech stocks, which saw a robust start in 2023, are now grappling with massive trillion-dollar losses, leaving their shareholders concerned. Wall Street's unease over surging bond yields and higher interest rates has cast a shadow on these companies. Traders are now pondering the potential impact on Bitcoin (BTC) if the S&P 500 downtrend continues.

Consequently, investors must investigate the correlation between Bitcoin and the S&P 500 and consider whether cryptocurrencies can thrive in an environment of high-interest rates.

Bloomberg Magnificent 7 index vs. S&P 500 equal weight index. Source: Bloomberg
Historical 30-day correlation between Bitcoin/USD and S&P 500 futures. Source: TradingView

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